The persistent NAV erosion and heavy dilution signal structural pressure on the BDC's portfolio. Monitor for further NAV declines and potential dividend cuts; the current $0.035/month distribution may become unsustainable if credit losses continue. The ATM program remains a key dilutive overhang.
Price Chart
Executive Summary
Oxford Square Capital Corp. reported Q2 2026 net investment income of $5.1M ($0.05/sh), up sequentially from $4.1M but down YoY from $5.5M. NAV per share fell further to $1.29 from $1.32 in Q1 and $1.69 at year-end 2025, while the company issued 11.3M shares via ATM for $17.8M, continuing significant dilution. The maintained $0.035/month distribution provides limited support, but the persistent NAV erosion and credit losses (non-accrual preferred equity increased to $6.9M) keep the outlook bearish.
Key Financial Metrics
Key Facts
- Q2 2026 NII of $5.1M ($0.05/sh) vs $5.5M ($0.08/sh) in Q2 2025
- NAV per share declined to $1.29 from $1.32 in Q1 2026 and $1.69 at year-end 2025
- Issued 11.3M shares via ATM for net proceeds of $17.8M during Q2
- Non-accrual preferred equity investments increased to $6.9M fair value
- Net realized losses of $5.2M in Q2 and $35.95M in H1 2026
- Total return based on market value was -19.75% for Q2 and -14.23% for H1 2026
- Maintained $0.035/month distribution for October-December 2026
Financial Impact
NAV per share declined 23.7% from year-end 2025 ($1.69 to $1.29); net realized losses of $35.95M in H1 2026 vs $14.5M in H1 2025; dilution of 22% from ATM issuance (86.1M shares to 105.1M)
Risk Factors
- Further NAV erosion from credit losses on CLO equity and debt investments
- Dividend cut risk if net investment income continues to decline on a per-share basis
- Continued dilution from at-the-market offering program
- Non-accrual preferred equity may expand, reducing income
Market Snapshot
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3336749 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 4d ago | Press Release | $1.18 | awaiting T+60 | — | $1.21 (+2.54%) |
Jul 31, 2026 12w ago | 8-K | $1.41 $1.22 | ▲ +13.40% | ▲ +15.18% | $1.21 (+14.07%) |
Jul 31, 2026 12w ago | 8-K | $1.55 $1.18 | ▲ +23.87% | ▲ +26.33% | $1.21 (+21.94%) |
Jul 31, 2026 12w ago | Press Release | $1.55 $1.18 | ▲ +23.87% | ▲ +26.33% | $1.21 (+21.94%) |
May 21, 2026 22w ago | Insider Cluster | $1.38 $1.42 | ▲ +2.90% | ▼ −1.40% | $1.21 (−12.32%) |
Apr 29, 2026 25w ago | Press Release | $1.59 $1.31 | ▲ +17.87% | ▲ +22.00% | $1.21 (+23.92%) |
Apr 22, 2026 26w ago | Press Release | $1.64 $1.36 | ▼ −17.08% | ▼ −22.97% | $1.21 (−26.32%) |
Mar 3, 2026 34w ago | Press Release | $1.75 $1.32 | ▲ +24.60% | ▲ +34.91% | $1.21 (+30.88%) |
US Market Status
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